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Patel Engineering Share Price Target 2024, 2025, 2027, 2030

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Table Of Contents

Introduction
Overview of Patel Engineering Company
Fundamental Analysis of Patel Engineering
Patel Engineering Share Price Targets
Patel Engineering Share Price Target 2025
Patel Engineering Share Price Target 2027
Patel Engineering Share Price Target 2030
Investor Types and Ratios
Advantages and Disadvantages of Investing in Patel Engineering
FAQs
Conclusion

Investing in shares requires deep insights into a company’s performance, historical trends, and future prospects. Patel Engineering, a prominent player in India’s infrastructure and construction sector, has consistently demonstrated resilience and growth over the years. In this blog, we will explore the Patel Engineering share price targets for the years 2024, 2025, 2027, and 2030. We’ll break down the company’s fundamentals, investor types, advantages, and disadvantages, giving you a clearer picture of whether this stock could be a good addition to your portfolio.

Introduction

Founded in 1949, Patel Engineering has become one of India’s oldest and most reputable infrastructure and construction services companies. With a strong portfolio that includes major infrastructure projects like highways, bridges, dams, hydroelectric power plants, and more, Patel Engineering has maintained a steady growth trajectory. This article analyzes the future share price targets of Patel Engineering, backed by expert insights and historical data, to help investors make informed decisions.

Overview of Patel Engineering Company

Patel Engineering operates in the infrastructure sector, with significant involvement in the development of roads, bridges, railways, dams, and other large-scale construction projects. The company’s notable clients include big names such as NTPC and NHPC. Patel Engineering has been a key player in India’s infrastructural growth, contributing to both urban and rural development.

The company has been able to maintain a consistent growth rate, with profits soaring due to the successful completion of major projects. In recent years, Patel Engineering’s growth has been driven by new orders and the adoption of advanced construction technologies, resulting in improved product quality and operational efficiency.

Fundamental Analysis of Patel Engineering

PE Ratio: The Price-to-Earnings (PE) ratio of Patel Engineering stands at 18.29, indicating positive investor sentiment. A higher PE ratio reflects the market’s willingness to pay more for every rupee of earnings, signaling a strong belief in the company’s future growth.

Current Ratio: The current ratio of Patel Engineering is 1.40, which means the company can comfortably cover its liabilities with its assets. This indicates a stable financial position, reassuring investors of the company’s ability to meet its short-term obligations.

Return on Assets (ROA): Patel Engineering’s Return on Assets (ROA) is 1.99%, reflecting the company’s efficiency in utilizing its assets to generate profits. A positive ROA is a good indicator of effective management and financial health.

Patel Engineering Share Price Targets

Patel Engineering Share Price Target 2024: The company has seen substantial growth in profits over the past few years. In 2022, Patel Engineering reported a net profit of ₹56.23 crore, which jumped to ₹156.79 crore in 2023. The operating profit also increased from ₹136.47 crore in March 2022 to ₹145.75 crore in March 2023.

Year	First Price Target	Second Price Target
2024	₹60	₹90

The projected share price target for Patel Engineering in 2024 ranges between ₹60 and ₹90, driven by the company’s strong growth momentum and expanding project portfolio.

Patel Engineering Share Price Target 2025

In 2025, Patel Engineering is expected to continue its upward trajectory. The company’s net sales grew from ₹3,025.69 crore in 2022 to ₹3,585.56 crore in 2023. The Return on Capital Employed (ROCE) improved from 10.02% over the last five years to 14.02% in the most recent year.

Year	First Price Target	Second Price Target
2025	₹95	₹140

With continued growth in sales and profitability, the share price target for 2025 is projected between ₹95 and ₹140.

Patel Engineering Share Price Target 2027

The company’s expertise in complex projects, such as underground powerhouses, positions it well for long-term growth. Key projects include the Rampur Hydroelectric Project with a capacity of 415 MW and the Srisailam Project with a capacity of 900 MW. The promoter holding remains strong at 43.458%.

Year	First Price Target	Second Price Target
2027	₹250	₹300

By 2027, Patel Engineering’s share price is expected to reach between ₹250 and ₹300, supported by its growing influence in the infrastructure sector.

Patel Engineering Share Price Target 2030

Looking further into the future, Patel Engineering is poised to achieve significant milestones by 2030. The company has expanded into new regions, such as Arunachal Pradesh, with projects like the Gongri Hydroelectric Project, boasting a capacity of 144 MW. The tax burden has also reduced from 40% in 2022 to 24% in 2023.

Year	First Price Target	Second Price Target
2030	₹400	₹450

With continued expansion and a focus on large-scale infrastructure projects, the share price target for 2030 is anticipated to range between ₹400 and ₹450.

Investor Types and Ratios

Public Holding: Public investors make up a significant portion of Patel Engineering’s shareholders, with a holding capacity of 47.95%.

Promoter Holding: Promoters hold 39.56% of the company’s shares, demonstrating strong insider confidence.

FII (Foreign Institutional Investors): FIIs account for 3.38% of the company’s shareholding, indicating international interest in Patel Engineering.

DII (Domestic Institutional Investors): Domestic institutions hold 9.10% of Patel Engineering’s shares.

Advantages and Disadvantages of Investing in Patel Engineering

Advantages:

Strong Market Position: Patel Engineering has a well-established reputation as one of the oldest construction companies in India.
Consistent Profit Growth: The company’s profit growth has been impressive, with a 185.22% increase in the last year alone.
Cash Flow: Patel Engineering’s strong cash flow enables it to take on new projects and continue expanding its operations.
Sector Demand: As a key player in infrastructure development, the demand for Patel Engineering’s services is expected to remain high, further driving growth.

Disadvantages:

Lower Circuit Risk: While the company’s long-term outlook is positive, there have been instances where Patel Engineering shares have hit the lower circuit in the short term.
Low ROE: The company’s Return on Equity (ROE) has been relatively low, standing at 0.95% over the last three years. This could be a concern for some investors seeking higher returns on their investments.

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FAQs

What is the main activity of Patel Engineering?

Patel Engineering is primarily involved in infrastructure and construction services, covering sectors such as roads, railways, bridges, dams, and hydroelectric projects.

What is the plan of Patel Engineering?

The company plans to continue expanding its presence in infrastructure development, with a focus on new projects and regions.

What is the Patel Engineering Share Price Target for 2024?

The share price target for Patel Engineering in 2024 is projected to be between ₹60 and ₹90.

What is the Patel Engineering Share Price Target for 2025?

The share price target for 2025 is anticipated to be between ₹95 and ₹140.

What is the Patel Engineering Share Price Target for 2027?

The projected share price target for 2027 is between ₹250 and ₹300.

What is the Patel Engineering Share Price Target for 2030?

By 2030, the share price target for Patel Engineering is expected to range between ₹400 and ₹450.

Conclusion

Patel Engineering is a promising investment opportunity for those looking to tap into the infrastructure sector. With a long-standing history, a strong market presence, and continuous growth in profits, the company is well-positioned for future success. While short-term fluctuations are possible, the long-term outlook remains positive. Investors who are patient and willing to ride out short-term volatility may find this stock to be a valuable addition to their portfolio.

Disclaimer: This blog is for educational purposes only and should not be considered as financial advice. Always consult with a SEBI-registered advisor before making any investment decisions.